Updated on November 22, 2021
3 Easy Ways to Save Money on Your Merchant Account
Here are some easy ways to save money on your Merchant Account.
1. Request interchange-plus pricing
Hands down this by far the best pricing for your merchant account. Don’t get caught up in the rate game with clever ads that read rates as low as 0.29% or similar. Trust me this will only be your regulated debit rate and most of your transactions will fall in to a different category. So what do we mean when we say different category?
This is classified as a tiered rate program where you have a debit rate, qualified rate, mid-qualified rate and non- qualified rate. Wait, but why are they advertising 0.29%? I’m sure you’ve heard of the teaser rate or bait and switch and you’re right, that’s exactly what that is. There are lots of savvy sales people that can make your head spin and get you totally confused when they are telling you about rates and if that ever happens to you just say STOP. Tell them you’re only interested in interchange-plus pricing. The tiered rate is where the processors and sales reps make all their money because chances are you won’t receive many debit cards and even if you do the majority of cards your business accepts will fall in to either the mid-qual or non-qual categories which are much higher rates.
The only thing that matters is your overall or total effective rate. We put together an article for you called the KISS Method to Understand Interchange-Plus Pricing which will help you understand exactly how it works.
2. Demand a month-to-month agreement
The one thing you don’t want if you’re not satisfied with your credit card processor is a long term contract. The problem is most merchants don’t even know if their stuck in a contract or for how long. If you have an early termination fee, chances are you’ll still come out better on the other side if you switch to a company with interchange-plus pricing. Let’s say your cancel fee is $295 and you save $1000 per year by switching, your bottom line just got a $705 boost. Something to heavily consider.
3. Don’t overpay for PCI compliance
We see payment providers absorbing the cost completely and also see other processors charging either monthly or annually for this fee. Obviously it’s best to find a company that absorbs the cost like Dharma, however if that’s not your cup of tea then try your very best to negotiate a better fee or find a low cost PCI fee.
Best of Category Reviews is an online platform that focuses on merchant credit card processing reviews for online stores and small businesses. Our recommended payment providers are the “Best of the Best” and their customer service is no different. Best of Category Reviews gives merchant credit card processing reviews based on research for Merchant Service Providers and Payment Solutions and offer a unique online tool where processors compete for your business to get you the best possible deal saving businesses an average of 40%. We put our payment providers through a rigorous vetting process, verify and re-verify to make sure that everything we recommend to merchants are completely accurate. When it comes to customer service our payment providers will exceed your expectations because they understand how payment services can affect your business whether it’s answering a question or resolving a technical issue. You can expect 24/7 in-house service and many times on a first name basis. Happy merchants want to stay with their provider and that’s exactly what you can expect. Compare rates and get a price quote today! Accept Credit Cards with ease.